Morgan Stanley Slashes Circle Internet Group Price Target Amid Crypto Contraction

Morgan Stanley downgraded Circle Internet Group (CRCL) to 'Underweight' from 'Equal Weight', citing USD coin contraction and reduced margins.

The investment bank's analyst, James Faucette, cut his target price for CRCL to $38 from $106. He also reduced the firm's USDC assumptions by 33% in 2027 and 44% in 2028, which drove earnings estimates below consensus.

Faucette believes that tokenized money market funds and deposits will threaten both USDC balances and take rates. Circle is set to report its earnings on Wednesday, August 5, with Wall Street expecting a GAAP EPS of $0.16 on revenue of $713.3 million.